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Commerce to transfer 25% of fund balance into LOGIC investment pool to earn higher interest
Summary
The council approved an application to join LOGIC (Local Government Investment Cooperative Trust) and staff said they plan to move 25% of the city’s fund balance into the pool to seek higher interest while maintaining liquidity.
The Commerce City Council approved a resolution Aug. 19 allowing the city to apply for participation in LOGIC, a local government investment cooperative trust, and staff said they plan to transfer about 25% of the city’s fund balance into the pool.
Assistant City Manager for financial services Miss Campbell described LOGIC as another governmental investment pool that typically offers a higher interest rate than accounts the city currently uses. “What I'm recommending is that we transfer a portion of our general funds fund balance, to this LOGIC account,” she told the council.
Campbell said the transfer would come from the city’s liquid fund-balance above the policy minimum. She said the city is carrying about 40% of expenses in liquid fund balance and would move roughly 25% — approximately $2 million — into LOGIC to seek higher returns while keeping funds accessible. “It is liquid. If something happens and something comes up and I need to be able to get those funds out, I can get them within 24 hours,” Campbell said.
Campbell noted LOGIC and the city’s existing pools (Techstar and Techspool) are managed by the same agency and Hilltop Securities is the city’s financial adviser. She said July LOGIC rates were about 4.5% while the city’s bank account earned about 4%.
Council approved the application and authorized the staff action. Campbell said she will include the LOGIC holdings in the quarterly investment update to council.
The resolution passed on a voice vote.
